Former President Donald Trump has ordered the U.S. Treasury to stop producing pennies, arguing that the cost of making them outweighs their actual value. He announced the decision on Truth Social, calling it a step toward cutting wasteful government spending.
Trump pointed out that each penny costs more than two cents to produce, calling it an unnecessary expense. He stated that eliminating new penny production is part of his broader effort to reduce inefficiencies in the federal budget.
This move aligns with recent cost-cutting efforts following Trump’s return to office on January 20. The newly created Department of Government Efficiency (DOGE), led by billionaire Elon Musk, had previously identified the penny as a candidate for elimination due to its high production costs.
“The directive marks another early move in Trump’s administration as he rapidly enacts policy changes through executive orders and proclamations, targeting issues ranging from immigration to government spending,” Newsweek wrote.
“The production cost of the penny has long outpaced its face value. The U.S. Mint reported losing $85.3 million in the 2024 fiscal year on the nearly 3.2 billion pennies produced. Each penny cost nearly $0.037 to make, an increase from $0.031 the previous year.
The nickel also costs more than its value, with each five-cent coin costing nearly $0.14 to produce.”
Pennies have been in production since 1792 and have undergone multiple changes in composition and size, according to the United States Mint. Originally made of pure copper, today’s pennies are primarily zinc with a thin copper coating. Although previous administrations have considered eliminating the coin, tradition and public sentiment had prevented any action.
While Trump’s order will stop new penny production, it is unclear what will happen to existing pennies or if Congress will intervene. Some economists suggest the decision could have a small impact on cash transactions, but with the rise of digital payments, reliance on pennies has already declined.
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Trump did NOT announce the end of the penny. He ordered the Treasury to stop producing more pennies. The pennies currently in circulation could easily last longer than most people commenting about the order.